HOW TO IDENTIFY A PROFITABLE AFFILIATE PROGRAM (PART 1) by Kathy Burns-Millyard
You see them everywhere... affiliate programs. They're a dime a dozen
now days. With so many companies launching affiliate programs, how can
you tell which ones might actually help you make money?
This is part one of a two part series, in which we help you to
determine which affiliate programs could be the most profitable for
you. So, let's jump right in!
1. How long has the affiliate program been around? A new affiliate
program is not necessarily a bad thing, but unfortunately they may
still be working out some kinks. And they might not have much in the
way of promotional material for you to use. An established affiliate
program on the other hand, will usually have payment schedules,
tracking statistics, and ad creative down to a science.
The longer a program has been around, the better the chances are that
it is successful too. A program like ScamFreeZone's Internet Success
Associate Program, for instance, which was launched in August 1999,
must be doing something right... otherwise they wouldn't still be
around more than three years later, right?
2. How much commission can you earn? Many affiliate programs pay very
little -- some as low as 2%! Others offer outrageously high
commissions... up to 75% in some cases. Why such a huge difference?
Usually, it's related to the products or services being offered.
Unfortunately, the commission structure can cause unbelievable
headaches for affiliates, and can even cause a program to fail too
though. Let me explain...
A company who sells products or services with a 30% profit margin,
might decide to only offer 10% affiliate commissions. This, in their
mind, is safe, because it allows the company to generate enough profit
to continue operating. Another company however, might decide that
paying affiliates more money will make them grow faster, so they'll
decide to offer a 25% commission... leaving themselves with only 5%
profit. With very little potential for profit, a company is much more
likely to fold, or at the very least close their affiliate program.
Now, most companies won't share their profit margin details with you.
There are things you can do though, that will help you get a better
gauge of how stable they might be. Using The ScamFreeZone's Internet
Success Program example above, you'll find that Neil Shearing, the
owner of this program, actually shares with you his profit margin. But
even if he didn't, you can get a feel for him and his company by
browsing his website. In doing this, you can tell that he doesn't have
one or more offices to maintain, no employees to pay, and no
high-falutin' executives or board of directors siphoning off profits.
So, do a little research. Dig into the company's website and see what
you can find. And if you're still not sure, try asking them! Just send
a brief, polite email... you never know what they might be willing to
share.
On the affiliate side of things, the commission structure can be a
headache. If for instance, you join a program which pays just 2%,
you'll only make $2 for every $100 in sales. If you're paid 10%
commission, then you'll get $10 for every $100 sold, and 50% will get
you $50 for every $100 sold. Now, at first glance, it looks like you'd
choose the highest commission offer, right? But you have to look at
the products too. If you're only able to sell $100 every six months,
then you're not making much money are you? If on the other hand, the
smaller commission offer is much easier to sell... say for example you
can sell $1000 worth of stuff every month... then you'll make more
money in the long run with the lower commission structure.
So, try to weigh the long-term value of a given commission structure,
with both stability and profitability of the company, before choosing
which program to join.
3. Would you use the products? This may seem like a strange question,
but the answer can actually determine how successful you might be with
any given affiliate program. You see, if you really like something,
really believe in it, that is going to show every time you talk about
it. You'll find yourself writing articles or testimonials to use on
your website... if you really like a product. You'll find yourself
referring to something you personally use, or found useful, just in
casual conversations. And those casual conversations, or brief
mentions on your website... they can turn into sales. Sales that
you'll make commissions from.
In Part 2 of this series, we'll tell you:
-- Why the number of products or services being offered can make a
huge difference in your earnings.
-- Show you how there may be more than one way to make money with the
same program.
-- Tell you what to look for, and what to be careful about, in the
affiliate program's communications.
-- And more.
For additional information on the examples given here, please visit
The ScamFreeZone's Internet Success Associate Program
--> http://www.gurugazette.com/resources/18-1.html
(Written by Kathy Burns-Millyard for The ScamFreeZone's Internet
Success Associate Program)
** Only print the resource box below if you are NOT an SFZ affiliate.
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Need some quality content for your publications? Check out The Guru
Gazette!
http://www.GuruGazette.com
And you can find out more about Kathy at
http://www.ElectronicPerceptions.com
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High Dollar Affiliate Marketing
Keep getting paid over and over for every sale you make!
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